ANZ suspends dividend as profits tumble 60%

ANZ Bank has suspended its dividend due to the coronavirus crisis, as profits tumbled 60 per cent and the lender took a $1 billion charge in anticipation of a wave of bad loans.

The big four bank on Thursday became the first of the major lenders to delay a decision on its interim dividend until there is greater certainty about the economic outlook, after the regulator this month urged boards to "seriously consider" such deferrals.

"The Board agrees with the regulator’s guidance that deferring a decision on the 2020 interim dividend is prudent given the present economic uncertainty and that making a decision at this time would not have been appropriate," Mr Gonski said.“This was a very difficult decision and the Board considered all options available as we understand the impact this will have on those shareholders who rely on dividends,” Mr Gonski said.

The move stands in contrast to National Australia Bank, which on Monday slashed its interim dividend to 30¢ per share as it also announced plans to raise $3.5 billion from investors. ANZ's half-year results showed the bank's cash profit on a continuing basis fell 60 per cent to $1.4 billion, as the lender took a $1 billion collective provision for the deteriorating economic conditions.

Source: Loan News Today (loannewstoday.net)

And yet their share price finished higher than before they reported this

a 60%loss of several $billion is still better than most of us are doing

ANZ still made a profit... I am WAITING to hear the announcement that SENIOR employees will have their MULTIMILLION DOLLAR pay and bonuses SLASHED because of poor performance!! They take the 'glory' when the economy is good! Like politicians... 'everyone else' should suffer!

Karma

No doubt bonus’ remain securely in place.

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